The rupee fell sharply in trade as the devaluation of the Chinese Yuan by authorities left currency markets across the globe very volatile.
The rupee was last trading at 64.61, a drop of 41 paise over Tuesday's level and a rate not seen since Sept 2013.
On Tuesday in a surprising move China devalued the Yuan, a move that could make its products more competitive across the globe. This may result in a fresh currency war and it could dampen domestic industries across a whole lot of nations including India.
Already, the Indian steel industry has said that the move by China could hurt the Indian domestic industry as it could make Chinese imports cheaper.
Stock markets across the globe were rattled by the Chinese depreciation of the Yuan and were trading sharply lower.